6.2% drop on HDB resale prices biggest in 13 years

In response on Friday's published data by the housing board, PropNex Realty states that the 2014 resale price drop of HDB flats was the biggest in the last 13 years since its 8.8% drop in 2001. In 2014, it plummeted to 6.2%. From a sales volume of 18,100 units down to 17,318 units with a 4.3% decline compared to 2013.

The resale flat prices steadily declined for six consecutive quarters with 1.5% dropped in the past three months. The sales volume and prices were affected due to different factors such as long term mortgage loans for HDB flats and 30% reduce in Mortgage Servicing Ratio (MSR) cap.

On PropNex CEO, Mohamed Ismail's statement, the resale market was pressured in recent years because of the growing supply of BTO flats.He quoted "Over 77,000 BTO flats were launched between 2011 and 2013, more than twice the number in the three years before. The Sale of Balance Flats programme has offered a good number and variety of choices for first-and second-time buyers”.

Price volume are expected to bump around 20,000 units on HDB resale this year due to the new resale policy which has less focus on Cash Over Valuation (COV) and lower asking price added Ismail.